Contrasting Algorhythm (NASDAQ:RIME) and Singing Machine (OTCMKTS:SMDM)

Algorhythm (NASDAQ:RIME) and Singing Machine (OTCMKTS:SMDM) are both small-cap business services companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, risk, institutional ownership, valuation, dividends and profitability.

Risk and Volatility

Algorhythm has a beta of 0.26, suggesting that its share price is 74% less volatile than the S&P 500. Comparatively, Singing Machine has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500.

Valuation & Earnings

This table compares Algorhythm and Singing Machine”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Algorhythm	$23.06 million	0.34	N/A	N/A	N/A
Singing Machine	$45.80 million	0.15	$2.17 million	N/A	N/A

Singing Machine has higher revenue and earnings than Algorhythm.

Analyst Ratings

This is a breakdown of recent recommendations for Algorhythm and Singing Machine, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Algorhythm	0	0	0	1	4.00
Singing Machine	0	0	0	0	0.00

Algorhythm currently has a consensus target price of $5.00, indicating a potential upside of 61.29%. Given Algorhythm’s stronger consensus rating and higher probable upside, equities analysts clearly believe Algorhythm is more favorable than Singing Machine.

Profitability

This table compares Algorhythm and Singing Machine’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Algorhythm	N/A	-198.73%	-36.64%
Singing Machine	1.67%	8.48%	2.98%

Summary

Singing Machine beats Algorhythm on 5 of the 9 factors compared between the two stocks.

About Algorhythm

Algorhythm Holdings, Inc., together with its subsidiaries, engages in the development, marketing, and sale of consumer karaoke audio equipment, accessories, and musical recordings in North America, Australia, the United Kingdom, Europe, and internationally. It offers karaoke products under the Singing Machine brand; licensed karaoke microphone products under the Carpool Karaoke brand; microphone and accessories, and portable Bluetooth microphones under the Party Machine brand; music entertainment singing machines for children under the brand Singing Machine Kids; connected vehicle karaoke devices; and karaoke music subscription services for the iOS and Android platforms, as well as a web-based download store and integrated streaming services for hardware. The company primarily sells its products to retailers, including national chains, warehouse clubs, department stores, lifestyle merchants, specialty stores, and direct mail catalogs and showrooms. The company was formerly known as The Singing Machine Company, Inc. and changed its name to Algorhythm Holdings, Inc. in September 2024. Algorhythm Holdings, Inc. was incorporated in 1982 and is headquartered in Fort Lauderdale, Florida.

About Singing Machine

The Singing Machine Company, Inc., together with its subsidiaries, engages in the development, marketing, and sale of consumer karaoke audio equipment, accessories, and musical recordings in North America, Europe, Asia, and Australia. It offers karaoke products under the flagship brand Singing Machine; licensed karaoke microphone products under the Carpool Karaoke brand; microphone accessories and portable Bluetooth microphones under the Party Machine brand; music entertainment singing machines for children under the brand Singing Machine Kids; and karaoke music subscription services for the iOS and Android platforms, as well as a web-based download store and integrated streaming services for Singing Machine hardware. The company primarily sells its products to retailers, including national chains, warehouse clubs, department stores, lifestyle merchants, specialty stores, and direct mail catalogs and showrooms. It operates in North America, Europe, Asia, and Australia. The Singing Machine Company, Inc. was founded in 1982 and is headquartered in Fort Lauderdale, Florida.